How Long to Read Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors

How Long Does it Take to Read Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors?

It takes the average reader and 36 minutes to read Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors by William Gbohoui

Assuming a reading speed of 250 words per minute. Learn more

Description

Policymakers from the sub-Saharan Africa (SSA) region often flag a mispricing of their sovereign debt presumably originating from a perception risk by international investors that lead to "unjustifiably" high borrowing costs. Against this background, this paper explores the extent to which a potential SSA premium exists in the financial markets following a broader two-fold approach. Firstly, using a sample of 1592 international primary sovereign fixed coupon bonds issued between 2003-2021 from Bond Radar by 89 countries, we find that SSA countries pay significantly higher coupon at issuance compared to their peers from other regions. Secondly, we assess whether there is any bias against SSA countries in the secondary market that would result in higher refinancing cost. Based on an unbalanced panel of quarterly data covering 107 countries over 1990 – 2022, we find that SSA countries pay higher refinancing costs in the secondary market. The paper further explores whether there are other factors overlooked by the literature that matter for the risk pricing by international investors. In that respect, we explore the sensitivity of spreads to some structural dimensions where SSA countries face acute challenges―the transparency of budget process, the importance of the informal sector, the level of financial development, and the quality of public institutions. The results show that the excess premium estimated for SSA countries vanishes when these structural factors are accounted for in the regressions.

How long is Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors?

Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors by William Gbohoui is 36 pages long, and a total of 9,216 words.

This makes it 12% the length of the average book. It also has 11% more words than the average book.

How Long Does it Take to Read Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors Aloud?

The average oral reading speed is 183 words per minute. This means it takes and 50 minutes to read Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors aloud.

What Reading Level is Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors?

Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

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Sub-Saharan Africa’s Risk Perception Premium: In the Search of Missing Factors by William Gbohoui is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

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